News

18 July 2017

UK inflation sees a surprise dip

Consumer prices in the UK rose by 2.6 per cent in the year to June 2017, a smaller rise than the anticipated 2.9 per cent.

Emmanuel Afoakwah, investment analyst at Redmayne-Bentley, said: “British consumers will welcome the news of a drop in the UK’s inflation rate, with recent figures suggesting that spending has been squeezed. The government will likely be relieved at this news, having experienced mounting political pressure calling for the reversal of the public sector pay cap. However, the inflation rate still exceeds wage growth in the UK, therefore the political pressure is unlikely to subside. Recent inflation figures have caused some Bank of England policy makers to be more hawkish in tone of late, but this dip in inflation is likely to dampen any enthusiasm for a rate hike.”

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